It is important to understand why energy companies use affiliates and other sites to network market energy. Understanding this can help investors and marketers when working on multi-level marketing with energy companies.
Below is some further information on what network marketing actually is and why it is used:
Network marketing (sometimes referred to as multi-level marketing, relationship marketing or direct selling) is a unique marketing strategy whereby a company works in partnership with independent sales agents who sell the company’s products and services directly to the consumer.
Rather than employ traditional means of advertising (such as TV, radio or print advertising), network marketing companies use a business model that relies on exponential growth. How this model works is very simple – network marketing companies pay commissions and bonuses to their sales agents for personally gathering customers of the company’s products. Sales agents are also compensated for recruiting other sales agents into the company when those new agents personally gather customers.
Since most people know each other when network marketing it tends to be the most loyal customer base for any product or service. It also presents a strong customer service line since these friends and family members know exactly who to contact when experiencing any types of problems.
What experiences have you had when network marketing energy, both good and bad?
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